This research endeavor is designed to investigate a model system of health care for the elderly. The system, called Triage, provides for the financing, organization and delivery of comprehensive health services on the basis of appropriateness relative to medical need. It is perceived as an economical alternative to the existing system in which care is fragmented and, at times, prescribed according to financial considerations rather than health status or appropriateness. To conduct the research, data will be collected for the entire Triage client population on functioning level at initial assessment, delivery of servces, costs, and sociodemographic characteristics. This information will be combined with data about the organization of Triage to describe the Triage program in terms of whom it serves, what services are provided and what are its costs for services and program operation. An in-depth comparative study will be made of a sample of the Triage population and of clients in alternative care settings. These groups will be reassessed regularly to determine changes over time in functioning status, costs of care, and institutional placement. The alternative settings will then be compared in terms of a cost-effectiveness model.